§ 238-a(1)(a) bars application-processing and other beginning-of-tenancy charges except where a statute/regulation provides otherwise and subject to listed exceptions.
The combined reimbursement cap in § 238-a(1)(b), with statutory exceptions for specified cooperative housing situations.
§ 238-a(2) uses whichever amount is less, subject to the cooperative-housing exception stated in the statute.
§ 238-a(2-a) requires lease/contract authorization and ties the charge to actual return costs or the referenced GOL § 5-328 amount.
Application and move-in charges are not an open-ended fee category
For a residential dwelling unit, § 238-a(1)(a) generally prohibits a landlord, lessor, sub-lessor or grantor from demanding a payment, fee or charge for processing, reviewing or accepting an application, or another payment before or at the beginning of the tenancy, unless a statute or regulation provides for it or the charge fits the background/credit-check framework or another listed exception.
The statute contains exceptions and special treatment for certain senior/care communities and cooperative housing situations. Do not apply the general rule without checking whether the property or transaction falls into one of those categories.
Background and credit check reimbursement has a specific cap and document trail
For the ordinary residential framework in § 238-a(1)(b), the cumulative fee for a background check and credit check may not exceed the actual cost of the checks or $20, whichever is less.
The landlord must waive the fee when the applicant provides a qualifying background or credit check conducted within the previous 30 days. The statute also conditions collection on giving the applicant a copy of the check and the receipt or invoice from the company that performed it.
- Save the application page and quoted screening fee.
- Keep the credit/background report copy supplied by the landlord.
- Keep the third-party invoice or receipt showing actual cost.
- If you supplied your own recent report, keep proof of its date and delivery.
A residential rent late fee has both a timing trigger and a dollar cap
Under § 238-a(2), a landlord generally may not demand a late-payment fee until rent has not been paid within five days of the due date. The fee may not exceed $50 or 5% of the monthly rent, whichever is less.
Rebuild the timeline from the lease due date, actual payment date, ledger posting date and the amount of monthly rent. Do not combine a rent late fee with card-processing, utility-billing or returned-payment charges.
Dishonored-check charges use a separate 2025-added framework
Section 238-a(2-a) separately addresses a check, draft or similar rent-payment instrument dishonored for insufficient funds. A charge must be provided for in the lease or contract and is tied to the actual costs/charges/fees incurred for the returned item or the amount referenced in General Obligations Law § 5-328(3), under the statutory formula.
If the charge exceeds the referenced statutory amount, § 238-a says the landlord must provide substantiating evidence of actual return costs upon request. This is not the same calculation as the residential rent late-fee cap.
Keep the fee categories separate
- Application-processing or move-in charge.
- Credit/background-check reimbursement.
- Rent late fee.
- Dishonored-check / returned-payment charge.
- Broker commission or apartment-listing-service fee, which can involve separate New York statutes and licensing rules.
- Security deposit, which is reviewed under GOL § 7-108 rather than § 238-a.
Lease language cannot waive the statutory limits
Section 238-a states that a lease or contract provision waiving or limiting the protections of the section is void as against public policy. Still, the facts and statutory exceptions matter, so use the source text for the exact property and charge before drawing a conclusion.
Compare this topic across states
Official sources
Primary statewide law limiting application/beginning-of-tenancy charges, background and credit check fees, residential late fees and specified dishonored-check charges.
Office of the New York State Attorney GeneralResidential Tenants’ Rights Guide — fees and late fees ↗Official New York consumer guidance explaining the $20 credit/background-check cap and the five-day, $50-or-5%-of-rent late-fee rule.